Binary Examples

Home >
Range of Markets >
Binaries >
Binary Examples

Binaries give you the potential for really dramatic profit/loss returns on short-term market movements.

Up or Down

It is 4.04pm and the FTSE 100 is trading at 5396 – down 12 points from yesterday’s close of 5408.

The IG Markets price for the 'FTSE to finish up' Binary is 18-22.

You believe the FTSE is going to rally before the close and finish up on the day, so you buy £10 per point at 22 of the 'FTSE to finish up' Binary.

You were right and the FTSE finishes the day strongly to close at 5410, up 2 points from yesterday’s close of 5408. Your Binary on the 'FTSE to finish up' closes at 100 (remember all Binaries close at 100 if the statement becomes true) and you win £780 calculated as follows:

Profit/Loss

Closing level	100
Opening level	22
Difference	78

Profit: 78 x £10 = £780

If you had been wrong, and the FTSE finished down on the day, your Binary on the 'FTSE to finish up' would settle at 0 (remember all Binaries close at 0 if the statement doesn't occur) and you would lose £220:

0 - 22 = -22, and -22 x £10 per point = £220 lost

Or simply, for a loss: 22 (price) x £10 (stake) = £220

All Binaries with IG Markets are limited risk. In the above example, from the outset £220 represents your maximum possible loss on that contract.

OneTouch

It is 2.04pm and GBP/USD is at 1.5420. The price has been rising and you feel it will continue.

The IG Markets price for the daily 'GBP/USD to Touch 15500' Binary is 26-30.

You believe sterling is going to rally and move through the 1.5500 mark today, so you buy £10 per point at 30 of the 'GBP/USD to Touch 15500' Binary.

You were wrong and sterling weakens over the day, closing at 1.5325. Your Binary on 'GBP/USD to Touch 15500' closes at 0 (remember all Binaries close at 0 if the statement doesn't occur) and you lose £300:

Profit/Loss

Closing level	0
Opening level	30
Difference	70

Loss: 70 x £10 = £700

If you were proved right and GBP/USD had rallied so that it touched or went through 1.5500 during the day, your Binary would settle at 100 (remember all Binaries close at 100 if the statement occurs) and you would have won £700.

(100 – 30) x 10 = £700

All Binaries with IG Markets are limited risk. In the above example, from the outset £300 represents your maximum possible loss on that contract.

Ladder

It is 1.45pm and the FTSE 100 is trading at 5400, up 30 points on the open of 5370.

The IG Markets price for the 'FTSE to finish up > 60pts' binary is 40-44.

You believe the FTSE is going to continue its rally over the day and close more than 60 points up, or above 5430, so you buy £10 per point at 44 of the 'FTSE to finish up > 60pts' binary.

You were right and the FTSE continues to rise, closing at 5441. Your Binary on 'FTSE to finish up > 60pts' closes at 100 (remember all Binaries close at 100 if the statement occurs) and you win £560:

Profit/Loss

Closing level	100
Opening level	44
Difference	56

Loss: 56 x £10 = £560

If you were proved wrong, however, and the FTSE had not closed more than 60 points up, in other words below 5430, your Binary would settle at 0 (remember all Binaries close at 0 if the statement doesn't occur) and you would have lost £440.

44 x 10 = £440

All Binaries with IG Markets are limited risk. In the above example, from the outset £440 represents your maximum possible loss on that contract.

Tunnel

It is 3.45pm and the FTSE 100 is trading at 5400, up 15 points from the open of 5385.

The IG Markets price for the 'FTSE to keep in range -30 to +30' Binary is 78-82.

You believe the FTSE is going to continue to stay within the 30-point limit each side of 5385 - meaning you feel it will not touch or go higher than 5415, or touch or go lower than 5355, at any time until expiry. So, you buy £10 per point at 82 of the 'FTSE to keep in range -30 to +30' Binary.

Unfortunately you were wrong and the FTSE jumped to close at 5419 - outside your tunnel range. Your Binary on 'FTSE to keep in range -30 to +30' closes at 0 (remember all Binaries close at 0 if the statement does not occur) and you lose £820:

Profit/Loss

Closing level	0
Opening level	82
Difference	82

Loss: 82 x £10 = £820

If you had been right and the FTSE had stayed within your tunnel range - lower than 5415 but higher than 5355 - your Binary would settle at 100 (remember all Binaries close at 100 if the statement occurs) and you would have won £180.

(100 - 82) x 10 = £180

All Binaries with IG Markets are limited risk. In the above example £820 represents your maximum possible loss on that contract.

IG Markets Ltd is authorised and regulated by the Financial Services Authority. FSA number 195355.

Binary Examples

Binary Examples

Up or Down

Profit/Loss

OneTouch

Profit/Loss

Ladder

Profit/Loss

Tunnel

Profit/Loss

Ready to trade Binaries?